Kelleher firm owes €106,000 card debt
Published 24/02/2010 | 05:00
Shelbourne Development Group, the US-based property vehicle controlled by Irishman Garrett Kelleher, suffered the ignominy of having its commercial credit card account cancelled by Bank of America last year as the lender began a legal battle seeking payment on millions of dollars worth of loans advanced to the company that it claims haven't been repaid on time.
Bank of America now claims that as of last month, Shelbourne Development Group has not paid an outstanding commercial credit card balance of $106,000.
Court documents just filed in the US reveal that the group was granted a commercial and business Visa card account back in 2007. In its credit card application, Shelbourne Development said that the commercial account was likely to rack up expense and travel-related expenses of $750,000 a year, and that it would probably be used for procurement purposes that would incur likely amounts of $1.2m on the company cards.
Mr Kelleher's company has been planning to build the world's tallest residential building, the Chicago Spire, in the American city. Construction began in 2007, and while about 30pc of the apartments in the Spire were subject to advance sales, development has halted.
Bank of America has sued Shelbourne Developments and Mr Kelleher personally for the return of millions of dollars in loans and interest that were to be used to construct the Spire.
Mr Kelleher and Shelbourne Development in turn sued Bank of America, claiming it "willfully and wantonly" engaged in a systematic pattern of deception.